Charitable Gift Annuity

Did you know…

A charitable gift annuity can provide you with tax-advantaged income far greater than CDs, stock dividends or bonds. Not only that, but they generate an immediate charitable income tax deduction upon creation.

Here’s an example:

An 80-year-old woman acquired a stock many years ago for $1,000. The stock had grown in value and was now worth $10,000. She was ready to sell the stock but did not want to pay the capital gains on the $9,000 of growth. In addition, she also wanted to increase her annual income and do something for the community. After discussing her situation, we recommended that she establish a charitable gift annuity with the stock. By doing this, she achieved the following results:

  • An 7.5% annuity for her entire life ($750, per year). If she lives for 12 years, the annuity payments together with the benefit of the tax deductions exceed her original contribution.
  • An immediate charitable income tax deduction of $4,780.
  • Deferral of the capital gains tax on the stock.
  • Upon her death, an endowment will be created within the Foundation that will permanently support the community upon her passing.

Foundation Charitable Gift Annuity

Monthly Example of Single Life $10,000 Gift Annuity

Rates Good Through November

AgeRateTotal Annual PaymentTax-Free PaymentImmediate Tax-Deduction
706.5%$650$478$2,341
808.0%$800$625$4,066
9012%$1,200$997$5,017

If a donation scenario like this one sounds appropriate for you, the Jewish Community Foundation has the experience and technical expertise to help. The Jewish Community Foundation can:

  • Simplify the process of contributing highly-appreciated, non-publicly traded assets
  • Help you realize the most favorable tax consequences with the greatest charitable impact
  • Work with you and your advisor to prepare and plan for contributions in advance of a liquidity event

Contact your experts in Jewish Philanthropy to learn more.

Daniel O. Brandeis, J.D., LL.M.

Daniel O. Brandeis, J.D., LL.M.

Foundation Director

412-992-5220
[email protected]

Sharon Perelman

Sharon W. Perelman, Esq.

Director of Planned Giving & Associate Foundation Director

412-992-5224
[email protected]

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